Buy vs rent: 70% more expensive. What About Real Estate Prices?

Buy vs rent: 70% more expensive. What About Real Estate Prices?

  There is a huge premium to buying a property compared to renting.  It is now 70% more expensive to buy vs rent a property, which is considerably higher than at any time in the last fifty years.  What is causing the large divergence in renting vs buying?  What...
Warning sign? sales drop 34%, impact on real estate

Warning sign? sales drop 34%, impact on real estate

The economy is currently in a “transition” phase.  To determine if the sun is setting on our current cycle, it is critical to watch for leading indicators of where we might be heading.  One of the strongest predictors of a recession is consumer purchases of one...
Will mortgage rates fall significantly in 2024?

Will mortgage rates fall significantly in 2024?

When I was writing this article mortgage rates were hovering right around 7%.  At the same time economists are predicting a sharp decline in mortgage rates and a booming 2024 real estate market.  On the other hand, the chart above shows a much different picture. ...
Why are home prices rising while mortgage rates stay high?

Why are home prices rising while mortgage rates stay high?

It is a bit perplexing; mortgage rates are over 7%, well over double their lows, and yet real estate prices are once again heading higher after a minor pullback late last year.  Prices have pivoted from last fall to make a strong comeback and approach new highs.  What...
What does higher for longer rates mean for real estate?

What does higher for longer rates mean for real estate?

  Wow, what a year.  In December the market was anticipating as many as 4 rate cuts this year. At the same time the federal reserve was doing a victory dance on pulling of a soft landing.  Fast forward and inflation is still hot and there is now a question of if...